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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Jagow who wrote (7215)	9/6/1998 5:44:00 PM
From: Jeff Williams	Read Replies (1) \| Respond to of 14226

Bob: Good question and I don't know the answer. But Rh sells for about double the price of AU and PGM's the last I checked. It is obviously very rare by comparison. I have predicted on these pages before that when GPGI really gets rolling, by that I mean the Oro Grande is doing 250 - 500 tons per day, that the price of PGM's would fall because there is going to be a glut. However, as the South Africans and Russians close their mines, because they will no longer be economic, the price will stabilize, but still likely be below that of Au. Just my opinion of course. GPGI can probably make a decent profit at $250 platinum once they achieve critical mass and are producing in sufficient quantity so their basic mill overhead is not eating them alive as it is today. Remember, many of South Africa's PGM mines are unprofitable at $300 per ounce! That's why I keep mentioning Oppenheimer. We have got to be making him nervous. The one wild card in this is aggregate DEMAND. If new uses of PGM's (such as fuel cells) accelerate, then maybe price will stay where it is, or even rise. But right now demand for all commodities seems to be decreasing as we find ourselves on the verge of a global recession. No help from Japan either. Looks like the only chance of avoiding what could be a long period of deflation is for a Fed rate cut(s). As to being "tight lipped," I think the cats out of the bag. Look at the figures released by Brian (forget his last name at the moment). As I recall they showed relatively high levels of Rh, as do GPGI previously announced assay/production results. Regards, Jeff